The main source of income of a university or college is the tuition fees and donations, but the spheres of expenditure are so many that the income in many institutions hardly covers half of the expenditure. The income from donations is never known in advance.
As a result, the financial position of higher institutions is always a matter of constant worry. They cannot run efficiently without the help of the government. With the expansion of higher education and the increase in the number of institutions the government grants have also gradually increased.
According to the statistics of University Grants Commission the amount of money given as help to institutions has also rapidly increased. In 1954-55 this amount was Rs. 178 lakhs, it increased to Rs. 266 lakhs in 1955-56 and swelled to Rs. 341 lakhs in the year 1956-57 and by 1992 it has gone upto about Rs. 1,337 lakhs only.
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On the other hand, despite the increasing number of students, the income of higher institutions has proportionately gone down. In 1954-55 the income was Rs. 3,182 lakhs, in 1955-56 it was only Rs. 3,782 lakhs and in 1992 it happened to be only Rs. 8,763 lakhs.
The Radhakrishnan Commission (1948-49) and the Commission of 1964-66 after the study of economic conditions of various institutions suggested that the aid given by the government should be utilised only in certain spheres like the pay of teachers, study leave, pension, expansion of educational implements, buildings, hostels, libraries, laboratories, scholarships, vocational and technical training, etc.
The government has started the implementation of some of these proposals. During the last few years grants were given for some of the spheres mentioned above and also for three years’ degree course and for extension programmes.
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The government policy of sanctioning grants and aids needs some changes in order to affect some reforms in the set-up of higher institutions. The institutions should be informed about the amount of grant to be allotted at the beginning of the session so that they may prepare their budgets accordingly.
While sanctioning grants provision should also be made for casual and unforeseen expenditure along with the permanent heads of expenditure. Besides, for settling the financial disputes of private institutions a definite outline should be indicated to the managing body and in the case of a university, a non-official independent judicial committee should be constituted.